The overwhelming majority of the world’s startups have one thing in common: they don’t have much money to spare. Every dollar, euro, peso, pound, yuan, and so on is claimed by a future expense before they’re even earned it. It’s not a signal of irresponsible management, rather, it’s the calling card of grassroots enterprise.
However, it doesn’t hurt to always try and find ways to free up some of this limited cash. Money without an immediate destination allows for a more lubricated business machine. This leads to more relaxed decision making, ultimately contributing to smarter strategies for growth in the long run.
Here are some of the best ways for startups to save smart in 2016;
Telecommunications providers are always going to provide a better rate when services are bundled. Depending on the venture, there could be a need for cable television in addition to high speed internet and classic phone lines. If this is the case, fiber optics based bundles are the best in terms of speed versus price. Check to see if fiber optic coverage exists in your city. Startups can potentially save hundreds in cable and internet bills over a single year of bundle service.
Write It All Out
A basic self audit of the company can lead to money saving conclusions. Expenses originally considered necessary may actually be avoidable when inventory or usage is compared against costs. Fleshing out the nitty gritty day in and day out costs will almost always reveal ways to shave off a percentage point in annual or even quarterly overheard. It just depends on how often a startup is willing to sit down and crunch the numbers available to them.
It’s a somewhat unfortunate truth about the current state of economic trends, but companies are doing everything they can to be rid of employees. Automation and increasing regulations enforcing benefits have incentivized businesses to reduce staff. For startups, many of which depend greatly on processes which require specialized skills, the costs of maintaining staff can be a massive burden. To reduce this burden, smaller companies ought to consider hiring contractors, which free them of the costs of providing benefits, contributing to unemployment insurance, and even needing an office.
It pays to maximize energy efficiency in the workplace. The rate in which the average small startup consumes power calls out for ways to cut down and therefore save up. These include tips as simple as conserving light usage to more active measures such as selecting appliances and electronics certified with an ENERGY STAR rating by the US Department of Energy. If all incorporated into a startup’s day to day practices, the savings will possibly enter the hundreds every year.
Last but not least, small businesses are recommended to seek out advantageous rewards programs through credit card companies, rental agencies, airlines, and hotel chains. Of course, it all depends on the nature of the business; startups without the need to book flights on a regular basis are better off skipping the frequent flyer perks in exchange for business credit card club benefits.
Startups are rarely in a position where wasted money can be easily written off. In most situations, every bit of cash on hand is going to go right into the company to keep the momentum going. If this is the case, it doesn’t hurt to analyze options for trimming down here and there, month to month. Incrementally, it may help to free up cash and thus provide owners and managers with a little more room to breathe. This, in turn, will maximize the rate of smart and effective decisions being made.